Managing the next decade of women’ s wealth
“There is a preconception that women
A GENERATIONAL SHIFT
ACCELERATING PROGRESS
are far more risk-averse when it
In a nutshell, “the future pool of clients,
Ten years ago, Zakrzewski was writing a
comes to investing but this simply
both men and women, will not just want
report with her colleagues on levelling
isn’t the case. It takes women longer
more, they’ll want better,” says Zakrzewski.
the playing field. At the time, it was
This means they’re looking for investments
thought that 2020 would see much less
that are engaged and purposeful. BCG’s
unconscious bias and women would
research shows that gender-based
no longer be treated as a homogenous
differences in investor behaviour diminish
group by wealth managers. Although the
with every new generation. Millennial
advancement has been slower than she
same risk profile as men. Once they
men and women share very similar views,
hoped, Zakrzewski remains optimistic
invest, it’s an equal playing field.”
including a shared preference for purpose-
that the speed of change is only going to
driven investing.
accelerate and is hopeful that we will see
If you dig a little deeper into women’s
Meanwhile, more women than ever are
typical investment behaviour, they tend
taking the lead in financial decisions - 70%
to spread their risk a bit more but remain
of millennial women, compared with just
more committed than men when it
40% of female baby boomers. Zakrzewski
comes to long-term investments, having
explains that “women’s empowerment
the patience to make investments
is fuelled by three main drivers - wage
with a longer-term perspective. If the
equality, more entrepreneurial activities
performance of two investments is more
by women, and more women in leadership
or less on par, women tend to choose
positions. Women that accumulate wealth
ESG-focused investments more than men;
themselves tend to manage it more
and also those that most align with their
actively. Our data shows that younger
own values. In addition, they are looking to
women delegate fewer financial decisions
invest to fund specific life stages or goals
than older women.”
much more than men.
to make an investment decision because they tend to gather data and information before committing. But when they do take the plunge, it’s the
the industry taking big strides in the next
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five years.